Correlation Between Maoming Petro and Nanjing Medlander
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Nanjing Medlander Medical, you can compare the effects of market volatilities on Maoming Petro and Nanjing Medlander and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Maoming Petro with a short position of Nanjing Medlander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Nanjing Medlander.
Diversification Opportunities for Maoming Petro and Nanjing Medlander
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Maoming and Nanjing is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and Nanjing Medlander Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Medlander Medical and Maoming Petro is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Maoming Petro Chemical Shihua are associated (or correlated) with Nanjing Medlander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Medlander Medical has no effect on the direction of Maoming Petro i.e., Maoming Petro and Nanjing Medlander go up and down completely randomly.
Pair Corralation between Maoming Petro and Nanjing Medlander
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to generate 0.8 times more return on investment than Nanjing Medlander. However, Maoming Petro Chemical Shihua is 1.25 times less risky than Nanjing Medlander. It trades about 0.13 of its potential returns per unit of risk. Nanjing Medlander Medical is currently generating about -0.04 per unit of risk. If you would invest 409.00 in Maoming Petro Chemical Shihua on September 13, 2024 and sell it today you would earn a total of 19.00 from holding Maoming Petro Chemical Shihua or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Nanjing Medlander Medical
Performance |
| Timeline |
| Maoming Petro Chemical |
| Nanjing Medlander Medical |
Maoming Petro and Nanjing Medlander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Nanjing Medlander
The main advantage of trading using opposite Maoming Petro and Nanjing Medlander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro position performs unexpectedly, Nanjing Medlander can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nanjing Medlander will offset losses from the drop in Nanjing Medlander's long position.| Maoming Petro vs. Blue Sail Medical | Maoming Petro vs. Beijing Wandong Medical | Maoming Petro vs. Jiangsu Yanghe Brewery | Maoming Petro vs. Xian International Medical |
| Nanjing Medlander vs. Industrial and Commercial | Nanjing Medlander vs. Kweichow Moutai Co | Nanjing Medlander vs. Agricultural Bank of | Nanjing Medlander vs. China Mobile Limited |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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